The stock of Pizza Hot Inc., a Mexican pizza chain, has an estimated beta of 1.2. Calculate the required rate of return on Pizza Hots stock if the SML is estimated as follows:

kj=0.07+0.095j

based on

1. An initial inflation expectation of 2 percent. Round your answer to one decimal place. %
3. A new inflation expectation of 3 percent. Round your answer to one decimal place. %